A commercial space can appear suitable during a viewing and still require significant work before a business can open. The existing layout, approved use, ventilation, electrical capacity, washrooms, entrances and fire-protection systems may not support the proposed operation.
The City of Regina advises business owners and contractors to consult an appropriate design professional before financially committing to a commercial location because required upgrades or changes may be expensive. A contractor’s preliminary review can also identify visible construction considerations, although it does not replace legal, engineering, environmental or building-code advice.
Use this checklist before signing an unconditional lease or committing the full renovation budget. It is easier to investigate limitations before the lease is final than to discover them after rent, design fees and equipment deposits have already been paid.
Confirm the proposed use, permit history, landlord and tenant responsibilities, building-system capacity, visible property condition, improvement allowance, preliminary renovation budget and realistic project schedule before making an unconditional commitment.
Confirm that the proposed business use is possible
The most important question is not whether the space looks right. It is whether the proposed business activity can be approved at that location and supported by the existing building.
A change from one business to another may affect:
- Building-code occupancy
- Permitted land use
- Occupant load
- Exit locations and travel distances
- Fire separations
- Washroom requirements
- Accessibility and barrier-free features
- Heating, ventilation and exhaust
- Water, drainage and plumbing venting
- Parking or loading requirements
- Fire alarms and sprinkler systems
- Public-health or licensing approvals
For example, converting an office into a restaurant is materially different from replacing finishes in an existing office. The City may require a building or development permit when the use, occupancy or occupant load changes—even when little physical construction was originally planned.
Business owners considering different properties can begin by reviewing available commercial renovation services in Regina and identifying which trades and consultants their proposed use may require.
A unit that previously contained a retail store, office or food business may not automatically be approved for a new operator’s proposed activity, layout or occupant load. Confirm the current records and proposed use before relying on the former tenant’s operation.
Ask for the property’s permit and occupancy history
Existing improvements are not automatically approved simply because they are already present. Ask the landlord for available drawings, permits, previous inspection records, completion documents and occupancy information.
Useful records may include:
- Approved floor plans
- Previous tenant-improvement permits
- Mechanical and plumbing drawings
- Electrical service information
- Fire-alarm or sprinkler documentation
- Occupancy or completion records
- Hazardous-material reports
- Roof, HVAC or building-maintenance records
Where records are incomplete, discuss the address and proposed activity with the appropriate City department before committing to a final construction plan. Existing drawings are useful, but critical measurements and visible conditions should still be verified at the property.
Determine what the landlord will provide
The lease should clearly distinguish landlord work from tenant work. Common landlord responsibilities may include base-building systems, roof or exterior work, main electrical service, common areas or delivery of the premises in a defined condition. Actual responsibilities depend on the negotiated lease.
Ask whether the premises will be delivered:
- In its existing as-is condition
- Demolished back to a shell
- With existing fixtures and equipment
- With functional base-building services
- With identified landlord improvements completed
- Subject to a tenant improvement allowance
- With repairs or maintenance completed before possession
Do not rely on verbal descriptions such as “ready for occupancy” or “the landlord will take care of it.” The lease documents should identify the agreed delivery condition, construction responsibilities and approval process.
Inspect the existing building systems
Electrical service and distribution
Review whether the electrical service and distribution can support the proposed lighting, computers, kitchen appliances, medical equipment, refrigeration, machinery or other specialized loads. Increasing capacity may involve more than installing additional outlets.
The review may need to consider panel capacity, available circuits, voltage, service size, equipment specifications and the location of electrical rooms. A qualified electrical professional should confirm the actual requirements.
Water, drainage and plumbing
Confirm the locations and apparent capacity of water, sanitary drainage and venting. Moving washrooms, sinks, commercial kitchen fixtures or treatment rooms may require substantial work below the floor, above the ceiling or through neighbouring areas.
Existing fixture locations do not guarantee that the system can support additional demand. Below-slab work can be particularly disruptive and should be considered before the layout is finalized.
Heating, cooling and ventilation
Determine how the premises are heated, cooled and ventilated. Ask whether the systems are shared or dedicated, how they are controlled, what maintenance records are available and whether the proposed activity introduces new exhaust or make-up-air requirements.
Fire and life-safety systems
Changes to walls, ceilings, occupant load or business use can affect alarms, sprinklers, exits, emergency lighting, exit signage and fire separations. These systems require project-specific review and should not be treated as decorative renovation items.
Accessibility and barrier-free conditions
Entrances, routes, doors, counters, controls and washrooms may need review against applicable Saskatchewan building-code and barrier-free requirements. US ADA terminology should not be used as a substitute for the requirements that apply in Saskatchewan.
A contractor coordinating commercial tenant improvements can organize construction information, trades, applicable permit applications and required inspections. The applicable authorities and qualified design professionals determine the final compliance requirements.
Investigate the visible condition of the space
Look beyond paint colours, furniture and decorative finishes. Record visible conditions that may affect renovation planning.
A standard viewing is not a destructive investigation. Concealed plumbing, wiring, structural conditions and hazardous materials may remain unknown until investigation or demolition begins. The project budget should include an appropriate contingency for conditions that cannot reasonably be confirmed beforehand.
If the property has known leakage, sewer problems or previous flooding, consider whether a commercial property restoration assessment is appropriate before new finishes conceal potentially affected materials.
Understand the tenant improvement allowance
A tenant improvement allowance is not necessarily a complete renovation budget. It is a negotiated arrangement that may reimburse certain eligible leasehold-improvement expenses under specified conditions.
Clarify:
- The total allowance
- Which expenses are eligible
- Required invoices, lien releases or other documentation
- When payment is made
- Whether the tenant must fund construction first
- Whether unused amounts are forfeited
- Who owns the installed improvements
- What must be removed or restored at lease end
- Whether landlord approval is required before work starts
- Whether the allowance affects rent or other lease terms
A qualified commercial leasing lawyer should review the lease language. A contractor can estimate construction work but should not interpret the legal obligations of the tenant or landlord.
Prepare a preliminary commercial renovation budget
An early budget should be based on the proposed business and the actual premises, not only a generic cost-per-square-foot figure. Identically sized spaces can require very different investments when their systems, layouts and proposed uses differ.
Possible budget categories include:
- Architectural and engineering services
- Specialist consultants
- Permit and review fees
- Demolition and disposal
- Structural changes
- Electrical upgrades
- Plumbing and drainage
- Heating, cooling and ventilation
- Fire-alarm and sprinkler changes
- Accessibility improvements
- Flooring, ceilings and wall finishes
- Millwork and countertops
- Painting
- Equipment connections
- Signage, technology and security
- Construction contingency
- Temporary operating or relocation arrangements
An office fit-out and a food-service conversion can have very different infrastructure requirements. Prospective office tenants can review the typical components of an office renovation in Regina when preparing an initial list of required work.
Evaluate the schedule before promising an opening date
A realistic commercial build-out schedule may include all of the following stages:
The complete schedule can also include measurements, design, consultant coordination, landlord approval, permit preparation, municipal review, procurement, construction, inspections, deficiency correction, equipment installation and move-in.
The City of Regina’s tenant-improvement guidance provides current permit information and approximate review timing, but actual timing can vary with application completeness, project type, required circulation and construction activity.
Final opening requirements depend on the approved scope, inspections, trades, materials and other applicable approvals. Avoid committing publicly to an opening date until the project team has evaluated these dependencies.
Restaurant spaces require additional investigation
Food-service businesses should investigate kitchen equipment, exhaust, make-up air, drainage, grease management, electrical loads, refrigeration, fire suppression, deliveries, waste storage and public-health requirements before signing.
The Saskatchewan Health Authority advises prospective food-business operators to submit floor plans, facility information and licensing documents to the local public health inspector before renovations and several weeks before the intended opening.
If the proposed location was not previously approved for comparable food service, consult the relevant specialists early. Review restaurant renovation planning services before evaluating a property solely on its dining-room appearance.
Questions to ask before signing a commercial lease
Ask the landlord, property manager or broker:
- What use is currently approved for the premises?
- Are current drawings and permit records available?
- Were previous alterations completed with permits?
- What base-building systems serve the premises?
- Who is responsible for system upgrades?
- What construction restrictions apply?
- Are after-hours deliveries or noisy work restricted?
- Is a tenant improvement allowance available?
- What insurance must the contractor carry?
- What landlord approvals are required?
- Who pays for restoration at the end of the lease?
- Can the lease be conditional on due diligence or approvals?
- When will the premises be available for measurements and work?
Construction questions should be reviewed with the project team. Legal terms, lease conditions and allocation of liability should be reviewed with a qualified commercial leasing professional.
Get construction input before committing
A contractor cannot guarantee municipal approval or identify every concealed condition during a preliminary visit. The contractor can, however, review the visible premises, outline likely construction components, identify obvious system concerns and recommend areas that need further professional investigation.
Reviewing a clear commercial renovation scope of work can also help the prospective tenant understand which responsibilities, exclusions, allowances and change procedures should be documented before detailed construction pricing begins.
KB Better Construction works with Regina business owners, landlords and property managers to plan commercial renovations, tenant improvements and coordinated construction projects based on the actual property and proposed use.
Considering a commercial location in Regina?
Before finalizing your build-out assumptions, assemble the listing information, proposed business use, available drawings and desired opening period. Our team can provide a preliminary renovation discussion and identify areas requiring further review.
Request a Preliminary Renovation DiscussionFrequently asked questions
Should I get a renovation estimate before signing a commercial lease?
A preliminary construction review can identify likely work, major system concerns and budget categories before the lease becomes unconditional. However, the review should be combined with legal, design, permit and building-system due diligence. Preliminary pricing may need revision once drawings, investigations and final selections are complete.
What is a tenant improvement allowance?
A tenant improvement allowance is an amount or reimbursement arrangement negotiated between the landlord and tenant for eligible leasehold improvements. The lease should define eligible costs, documentation, payment timing, ownership of improvements and what happens to unused funds. It should not automatically be treated as the total renovation budget.
Can I assume a former retail unit is approved for a restaurant?
No. A restaurant may introduce different occupancy, ventilation, plumbing, fire-protection, health and accessibility requirements. Existing approval for retail activity does not establish that the property can support food service. Confirm land-use and building requirements before making an unconditional commitment.
Who approves commercial leasehold improvements?
Approval may involve the landlord, City of Regina, architects, engineers, inspectors, the Saskatchewan Health Authority and other authorities, depending on the property and business. The contractor can coordinate construction information, but cannot replace the approvals assigned to regulatory authorities or design professionals.
Can the contractor promise when the business will open?
A contractor can prepare and update a project schedule based on known work and current information. The opening date can also depend on design completion, materials, landlord decisions, inspections, authority approvals, equipment commissioning and matters outside the contractor’s direct control. Public opening commitments should allow for those dependencies.
What if the commercial space has water stains or a musty smell?
Record the condition and ask for information about previous leaks, repairs and moisture investigations. A cosmetic repair does not establish that the source was corrected or concealed materials are dry. Further assessment may be appropriate before new walls, flooring or millwork cover the area.